Canadian home prices in February edged up 0.1% from the previous month, according to the Teranet-National Bank National Composite House Price Index™. It was the third consecutive monthly rise, following on three consecutive monthly declines. The slightness of the increase can be laid to declines in three of the six metropolitan markets surveyed. Prices were up 0.3% from the month before in Vancouver and 0.5% in Montreal and Ottawa. The Ottawa rise broke a run of five straight monthly declines. On the downside, prices fell 0.1% in Toronto, 0.4% in Halifax and 0.5% in Calgary.The 12-month gain in the composite index slowed to 3.8% in February, the eighth consecutive month of deceleration. The largest rises from a year earlier were in the three easternmost cities - 6.9% in Montreal and Ottawa, 7.6% in Halifax. It remains to be seen whether the Halifax result is biased due to the small number of transactions normally recorded in that market between December and February. In Toronto the 12-month increase was 3.4%, in Vancouver 3.5%. Calgary prices were down 3.4% from a year earlier, for a fifth consecutive month of 12-month deflation.
Data for March from the Canadian Real Estate Association show generally balanced conditions in major urban markets. In the two cities where homes are most expensive, Vancouver and Toronto, sales may have been brought forward by the January announcement that the maximum amortization period for an insured mortgage would be reduced to 30 years effective March 18.The Teranet–National Bank House Price Index™ is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index. This is known as the repeat sales method; a complete description of the method is given at http://www.housepriceindex.ca/
The Teranet–National Bank House Price Index™ is an independently developed representation of average home price changes in six metropolitan areas: Ottawa, Toronto, Calgary, Vancouver, Montreal and Halifax. The national composite index is the weighted average of the six metropolitan areas. The weights are based on aggregate value of dwellings as retrieved from the 2006 Statistics Canada Census. According to that census1, the aggregate value of occupied dwellings in the metropolitan areas covered by the indices was $1.168 trillion, or 53% of the Canadian aggregate value of $2.207 trillion.
All indices have a base value of 100 in June 2005. For example, an index value of 130 means that home prices have increased 30% since June 2005.
Thursday, April 28, 2011
Monday, April 25, 2011
Do you need an agent for a bidding war?
April 22, 2011
Mark Weisleder
More people are trying to sell their homes by themselves, either through sale by owner systems or by using an agent to post their information onto the MLS system for a fee and then not using the agent for anything else. One question is whether these private sellers can take advantage of the many bidding wars, especially in the Toronto area, that are diving selling prices above asking. Private sellers wonder whether they can create the same atmosphere. I think the answer is no.
I suspect that sellers who successfully sold their home after a bidding war were represented by a real estate agent. Here’s why:
1.Agents have marketing strategies, designed to create excitement about a property. For example, a property may be advertised, but no offers considered until after a specific date, to let as people as possible see the home. This recently occurred at a home for sale at 30 Yorkshire Rd., in Toronto.
The property was listed for sale by Brenda Seymour of Sutton Group Heritage Realty on April 7, 2011. The offer price was $325,000. On the MLS system it said: “Offers gratefully accepted at 7 pm on April 11, 2011. Please register all offers by 5 pm. Deposit certified cheque/Bank Draft requested.
On April 11, 13 offers were received and the property sold that night for $360,000. Private sellers have a very difficult time creating this type of marketing demand.
2.Many agents will recommend home staging, to make the home appeal to the widest number of potential buyers. Private sellers often mistakenly believe that their own personal style and taste is enough.
3.When an agent handles the bidding, they have strict confidentiality requirements. No offer price can be shared with other buyers. There is an equal chance for buyers to succeed. A private seller does not have this obligation. They can show a buyer’s offer to anyone else. As a result, buyers are very wary of competing on this type of property.
4.An agent will often recommend that the seller sign a disclosure statement about the condition of the property or do a pre-listing home inspection and make the report available to interested buyers. This demonstrates integrity and assists in putting the buyers’ mind at ease that they will not discover problems with the home after closing. Private sellers are often told by their lawyers that they should not sign any type of disclosure statement about the condition of their properties as it might entangle them in litigation. What the lawyers don’t explain is that when you make no disclosure, buyers will not trust the seller and thus either shy away from the property or more importantly, offer less money. In addition, they will be hesitant to participate in any bidding war.
When you sell by yourself, you may in fact save money on real estate commission. Yet if your net price is less than what you could have received if the property was properly marketed, then is this really a good deal for you? What many sellers have always known is that when you use the right agent to sell your property, your chances of obtaining more money is much higher.
If you have sold a property by yourself and were successful in selling your property for over the asking price through a bidding war, I would like to hear from you and find out how you did it.
Also read:
Buying a home: 10 things to know
Is selling you home by yourself a good idea.
Mark Weisleder is a lawyer, author and speaker to the real estate industry. If you have any questions about real estate issues, email mark at mark@markweisleder.com
Mark Weisleder
More people are trying to sell their homes by themselves, either through sale by owner systems or by using an agent to post their information onto the MLS system for a fee and then not using the agent for anything else. One question is whether these private sellers can take advantage of the many bidding wars, especially in the Toronto area, that are diving selling prices above asking. Private sellers wonder whether they can create the same atmosphere. I think the answer is no.
I suspect that sellers who successfully sold their home after a bidding war were represented by a real estate agent. Here’s why:
1.Agents have marketing strategies, designed to create excitement about a property. For example, a property may be advertised, but no offers considered until after a specific date, to let as people as possible see the home. This recently occurred at a home for sale at 30 Yorkshire Rd., in Toronto.
The property was listed for sale by Brenda Seymour of Sutton Group Heritage Realty on April 7, 2011. The offer price was $325,000. On the MLS system it said: “Offers gratefully accepted at 7 pm on April 11, 2011. Please register all offers by 5 pm. Deposit certified cheque/Bank Draft requested.
On April 11, 13 offers were received and the property sold that night for $360,000. Private sellers have a very difficult time creating this type of marketing demand.
2.Many agents will recommend home staging, to make the home appeal to the widest number of potential buyers. Private sellers often mistakenly believe that their own personal style and taste is enough.
3.When an agent handles the bidding, they have strict confidentiality requirements. No offer price can be shared with other buyers. There is an equal chance for buyers to succeed. A private seller does not have this obligation. They can show a buyer’s offer to anyone else. As a result, buyers are very wary of competing on this type of property.
4.An agent will often recommend that the seller sign a disclosure statement about the condition of the property or do a pre-listing home inspection and make the report available to interested buyers. This demonstrates integrity and assists in putting the buyers’ mind at ease that they will not discover problems with the home after closing. Private sellers are often told by their lawyers that they should not sign any type of disclosure statement about the condition of their properties as it might entangle them in litigation. What the lawyers don’t explain is that when you make no disclosure, buyers will not trust the seller and thus either shy away from the property or more importantly, offer less money. In addition, they will be hesitant to participate in any bidding war.
When you sell by yourself, you may in fact save money on real estate commission. Yet if your net price is less than what you could have received if the property was properly marketed, then is this really a good deal for you? What many sellers have always known is that when you use the right agent to sell your property, your chances of obtaining more money is much higher.
If you have sold a property by yourself and were successful in selling your property for over the asking price through a bidding war, I would like to hear from you and find out how you did it.
Also read:
Buying a home: 10 things to know
Is selling you home by yourself a good idea.
Mark Weisleder is a lawyer, author and speaker to the real estate industry. If you have any questions about real estate issues, email mark at mark@markweisleder.com
This tenant paid $400 to settle a dubious $1,050 charge
April 11, 2011
Mark Weisleder
An issue that comes up frequently is what are a tenant’s responsibilities, when they vacate a unit.
The law says tenants are responsible for ordinary cleanliness of their unit and any damage caused by their willful or negligent conduct. But a clause that says that a tenant must leave the apartment in “move-in condition,” which implies a greater level of cleanliness, will usually not be enforceable.
I received an email from Christina who rented an apartment in Barrie for three years. Her lease had a clause which said she had to leave the apartment “in a move-in condition” with a charge for cleaning (including fridge and stove) and/or damages incurred if applicable.
Christine lived there alone, had a steady job and did not have any pets or frequent guests. Before she left, she cleaned the apartment and took pictures. The landlord then sent her a bill for $1,050 for costs to repaint the apartment, to clean the carpets and for general cleaning. She didn’t pay and after 30 days, the landlord turned the file over to a collection agency, which started a small claims court action for the money. The credit bureaus were also notified, which damaged Christine’s credit rating although no claim had yet been proven.
Christine settled the matter with the collection agency for $400 in order to have her credit rating restored, although she did not feel she owed the money. In this case, without seeing pictures of the apartment on the day Christine left, it is hard to tell whether the landlord was justified, but in my opinion, they would have had a hard time proving this if it actually went to court. I can understand why Christine settled this case to be finished with the matter and restore her credit rating, but I feel that sometimes you need to stand up for your rights and fight. Many landlords request that tenants sign a form called a rental unit condition statement when they move into their apartment, so that both parties clearly agree on the condition of the apartment when the tenant moves in. The landlord will then refer back to this document when the tenant vacates to compare whether any new damage was done during the tenancy. I have no objection in principle to the use of this form. Think of the last time you rented a car. The company also checked the car with you to see whether there were any existing dents or scratches so that you understood that you would be responsible for anything that happened during your rental. If you are asked to sign this form, be very careful and detailed to make a note of every scratch in the hardwood, cracks in the tiles, stains in the carpet or sink and take pictures of the apartment when you move in as well. Make sure you test all of the appliances, faucets and electrical outlets. Then keep your copy in a safe place. This will protect you from any unwarranted claims for damages to your unit when you move out.
Mark Weisleder is a lawyer, author and speaker to the real estate industry. If you have any questions on landlord/tenant or real estate issues, send
them to mark@markweisleder.com
Mark Weisleder
An issue that comes up frequently is what are a tenant’s responsibilities, when they vacate a unit.
The law says tenants are responsible for ordinary cleanliness of their unit and any damage caused by their willful or negligent conduct. But a clause that says that a tenant must leave the apartment in “move-in condition,” which implies a greater level of cleanliness, will usually not be enforceable.
I received an email from Christina who rented an apartment in Barrie for three years. Her lease had a clause which said she had to leave the apartment “in a move-in condition” with a charge for cleaning (including fridge and stove) and/or damages incurred if applicable.
Christine lived there alone, had a steady job and did not have any pets or frequent guests. Before she left, she cleaned the apartment and took pictures. The landlord then sent her a bill for $1,050 for costs to repaint the apartment, to clean the carpets and for general cleaning. She didn’t pay and after 30 days, the landlord turned the file over to a collection agency, which started a small claims court action for the money. The credit bureaus were also notified, which damaged Christine’s credit rating although no claim had yet been proven.
Christine settled the matter with the collection agency for $400 in order to have her credit rating restored, although she did not feel she owed the money. In this case, without seeing pictures of the apartment on the day Christine left, it is hard to tell whether the landlord was justified, but in my opinion, they would have had a hard time proving this if it actually went to court. I can understand why Christine settled this case to be finished with the matter and restore her credit rating, but I feel that sometimes you need to stand up for your rights and fight. Many landlords request that tenants sign a form called a rental unit condition statement when they move into their apartment, so that both parties clearly agree on the condition of the apartment when the tenant moves in. The landlord will then refer back to this document when the tenant vacates to compare whether any new damage was done during the tenancy. I have no objection in principle to the use of this form. Think of the last time you rented a car. The company also checked the car with you to see whether there were any existing dents or scratches so that you understood that you would be responsible for anything that happened during your rental. If you are asked to sign this form, be very careful and detailed to make a note of every scratch in the hardwood, cracks in the tiles, stains in the carpet or sink and take pictures of the apartment when you move in as well. Make sure you test all of the appliances, faucets and electrical outlets. Then keep your copy in a safe place. This will protect you from any unwarranted claims for damages to your unit when you move out.
Mark Weisleder is a lawyer, author and speaker to the real estate industry. If you have any questions on landlord/tenant or real estate issues, send
them to mark@markweisleder.com
Tuesday, April 5, 2011
First-time buyers in major Canadian markets move to get in ahead of higher interest rates, says RE/MAX
Mississauga, ON (April 5, 2011) - Driven by the threat of higher interest rates down the road, first-time buyers are contributing to strong upward momentum in residential housing markets across the country, according to a report released by RE/MAX.
The The RE/MAX First-Time Buyers Report , highlighting trends and developments in nineteen major Canadian centres, found that low interest rates and balanced market conditions have provided significant impetus in 2011, particularly at lower price points. Just over 30 per cent of markets are reporting sales in excess of 2010 levels as a result, while almost 70 per cent have experienced an upswing in average price. Leading the country in terms of percentage increases in the number of homes sold are Western Canadian markets, including Saskatoon (up close to 15 per cent), Greater Vancouver (up close to 12 per cent), and Winnipeg (up just over 11 per cent). With an average price hike of close to 20 per cent year-to-date (February), Greater Vancouver continues to show unprecedented strength, followed by Hamilton-Burlington (eight per cent), Quebec City (seven per cent), Winnipeg (close to seven per cent), Greater Toronto (five per cent), and Greater Montreal (five per cent).
The The RE/MAX First-Time Buyers Report , highlighting trends and developments in nineteen major Canadian centres, found that low interest rates and balanced market conditions have provided significant impetus in 2011, particularly at lower price points. Just over 30 per cent of markets are reporting sales in excess of 2010 levels as a result, while almost 70 per cent have experienced an upswing in average price. Leading the country in terms of percentage increases in the number of homes sold are Western Canadian markets, including Saskatoon (up close to 15 per cent), Greater Vancouver (up close to 12 per cent), and Winnipeg (up just over 11 per cent). With an average price hike of close to 20 per cent year-to-date (February), Greater Vancouver continues to show unprecedented strength, followed by Hamilton-Burlington (eight per cent), Quebec City (seven per cent), Winnipeg (close to seven per cent), Greater Toronto (five per cent), and Greater Montreal (five per cent).
Subscribe to:
Posts (Atom)